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FAQ

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     Important Definitions​

  • “Mark-to-Market” is an accounting method that values the shares according to the current market and not the share price. In fact it is a correlation between the “Mark” price - which is 80% of the Share Price, and the “Market” which is the share price for the stock code at any time during any Trading Day.​
     

  • “Share Base Price” is the price of the stock per share of each tranche (which unless otherwise agreed) is calculated, based on the low of the 1 day or 5 day, Volume Weighted Average Price (VWAP) prior to funding each tranche, at the direction of the investor.​
     

      Major Terms & Condition of a repo transaction

  • DEFAULT –  the information here is only a window of the actual agreement and it can not be relied upon. Please get your own legal advice.​
     

  • Default occurs when there is a failure to add funds or shares to match mark-to-market top ups when the share price is 20% below the current share price or when the price is 80% of the Share Base Price on the day the default occurs. ​
     

  • Default occurs if, at the close of trading on the (5) fifth trading day - the aggregate of the daily volume of the Stock is (25%) twenty five percent below the (30) thirty-day moving average of the daily volume of the Stock and a Top-Up of cash or shares has not been made.​
     

  • Default occurs if no cash or shares is added, at the close of trading when the Stock closing price is (35%) thirty five percent below the Share Base Price for any tranche;
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  • Default is triggered should the Payment of fees (application, origination, interest & funding account fee (both called maintenance fees) are not be made by the due dates.​
     

  • If Capital Recipient has not timely complied with its Mark-To-Market Top-Up obligations; or ​
     

  • If the Stock is suspended from market trading, for five Trading Days in the aggregate and a Top-Up has not been made in accordance with Section 9; ​
     

  • If dilution of the Stock occurs, by ten percent or more;
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  • If any kind of injunction to freeze the assets prior to funding.​
     

  • This Agreement does not provide for any personal or corporate guaranties from the Capital Recipient for Default. Except for any Capital Recipient’s fraud or misrepresentation.​
     

  • Applicable Law and Proceedings will occur in England.​
     

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